PlaySide Studios (ASX:PLY) reported first-half results it said marked a key milestone following an April restructure, with management pointing to improved operating discipline, stronger profitability, and a healthier cash position ahead of a “stronger second half” driven by the global launch of Mouse.
First-half financial performance and cost base reset
Management said the company delivered revenue of AUD 20.4 million, coming in above its guidance range of AUD 19 million to AUD 20 million. The company noted that roughly three-quarters of revenue was generated from external projects, which it said was expected given there were no new major original IP launches during the half.
To illustrate the impact of operational changes, management compared the first half to the June half following the April restructure and said the company maintained flat revenue despite a quieter launch period. It also highlighted AUD 7 million in annualized cost savings achieved through the restructure, adding that internal comparisons to the weeks immediately prior to the restructure showed even greater improvement, but that the company used a conservative methodology aligned to audited accounting periods.
Marketing costs were described as lower largely due to timing. Management said larger campaigns for Game of Thrones and Mouse were conducted in June last year, and with Mouse’s launch delayed, some spending expected in the December half is occurring now.
Original IP catalog, external projects, and Meta partnership
On original IP, PlaySide said it focused on extracting more value from its back catalog during the half through platform-specific sales campaigns for titles including Age of Darkness and Kill Knight. Management emphasized that because development costs for these titles are already expensed, incremental sales contribute directly to the bottom line, which it described as “high margin and highly repeatable.”
In external projects, PlaySide said it extended its long-term partnership with Meta on Horizons through the end of calendar 2026. Management addressed Meta’s internal restructure of Reality Labs in January, stating that PlaySide’s work “remains steady and unchanged.” It also said scope expansions during the half supported activity levels, with much of the expansion tied to Meta’s push into mobile—an area where PlaySide said its mobile gaming experience positioned it well.
Capital management: equity raise, DGTO-backed debt, and development investment
PlaySide said capitalized development costs increased during the half, reflecting a larger team working to bring Game of Thrones to life and a final push to prepare Mouse for its global debut. Management described this as “high-quality capital” aimed at projects expected to drive the company’s next growth phase.
The company said it raised a small amount of equity via a placement and share purchase plan, noting the additional funds helped support the decision to delay Mouse’s launch window. It also disclosed that it secured AUD 6 million in debt financing backed by a AUD 7.8 million DGTO claim. Management described the DGTO as a 30% government rebate on Australian development spend, said a claim had already been lodged for AUD 7.8 million, and said it expected the cash later this year. Management said accessing funds earlier provided flexibility around Mouse’s launch timing and helped support several longer-term initiatives.
Business development expansion and a new publishing agreement
PlaySide said it has expanded its global footprint by hiring two business development executives based in Dubai to pursue opportunities in the Middle East, with a targeted mandate focused on high-value contract work. Management cited government-backed ambitions across Saudi Arabia, the UAE, and Qatar, specifically referencing Saudi Vision 2030 goals for gaming sector growth.
The company also said it added Stefan Kreutzer to cover Europe and support U.S. efforts, noting he previously led global business development for Behaviour Interactive. Management said his network and experience scaling a business balancing original IP and external projects would support PlaySide’s growth ambitions.
Separately, PlaySide announced a new global publishing agreement with Maverick Games for an upcoming platformer titled Boons. Management said the title offers a different profile than Mouse, emphasizing the experience of the development team behind it. It added that Mouse’s industry reputation has already created a “halo effect” that is helping open doors to partnerships.
Mouse launch timing, wishlist momentum, and broader pipeline commentary
Management said Mouse’s marketing campaign is performing in line with expectations, reaching 1.1 million wishlists on Steam and 1.3 million wishlists in total, with February wishlist additions running at twice the January rate. The company said it is on track to hit a 1.4 million wishlist target by launch. It also said the game is now in the hands of media under embargo and expects additional coverage ahead of release.
PlaySide said it moved Mouse’s launch date slightly to April 16 (U.S. time), citing quality as the primary driver as it works to ensure performance across multiple platforms and hardware specifications. Management also described the move as tactical, saying it monitors release calendars and maintains multiple launch-window contingencies, with mid-April offering “clear air and technical readiness.” On pricing, management said the exact retail price would be revealed in about three weeks as it goes live on platforms, indicating it expects pricing above the US$20 range but below US$40.
On Game of Thrones, PlaySide said it has nearly a quarter of a million wishlists after releasing only an initial cinematic reveal trailer and a developer diary. Management said it has seen traffic spikes tied to new episodes of A Knight of the Seven Kingdoms and expects wishlist momentum to improve further once gameplay is revealed later this year.
The company also discussed Dumb Ways to Die, citing the announcement of Dumb Ways to Party and the launch of Dumb Ways characters and emotes in Fortnite. It said it integrated the franchise under the general manager overseeing original IP projects on PC and console and is conducting exploratory prototyping to build a pipeline of future Dumb Ways titles. Beyond games, it highlighted a partnership with Spin Master to launch a new card game in March.
In Q&A, management described the external projects pipeline as spanning three tiers:
- Smaller RFPs in the AUD 1 million to AUD 3 million revenue range
- Mid-size development discussions with IP owners in the AUD 2 million to AUD 10 million revenue range
- Larger studio contracts targeted at AUD 5 million to AUD 10 million in annual revenue over two years or more
Management said it had worked on more pitches in the last four months than in the entire year prior and noted improving industry sentiment, higher RFP volumes, and increasing M&A activity. It said outsourcing remains an important path for AAA studios that have not rebuilt internal headcounts.
PlaySide reiterated its FY26 guidance and said Mouse remains the key driver behind its expectation that FY26 revenue will exceed the prior year. Management said it expects to provide a guidance update within a few weeks—and no more than a month—following Mouse’s launch, depending on initial performance.
About PlaySide Studios (ASX:PLY)
PlaySide Studios Limited develops and sells mobile, PC, and console video games in Australia. The company provides titles in a range of categories, including self-published games based on original intellectual property and games developed in collaboration with studios, such as Disney, Pixar, Warner Bros, and Nickelodeon. Its portfolio includes approximately 50 titles that are delivered across 4 platforms, which consists of mobile, virtual reality, augmented reality, and PC. PlaySide Studios Limited was incorporated in 2011 and is headquartered in Port Melbourne, Australia.
